Tag: financial independence

Retire Early Without Harming Others // A Hard Look at FIRE and Racial Inequality

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My last post was about how the discourse of the FIRE community upholds systemic racism, but today’s is much more personal. This is about how our choices as individuals — as investors, as people choosing where to live, as earners, as tax payers and as charitable givers — impact and likely harm others, especially those who are already impacted by racial inequality. Fortunately, there are plenty of steps we can take to do better, and to ensure that we’re not harming others in our quest to achieve work-optional life.

Doing the Thing That Scares You

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One of the biggest things I’ve discovered in the last year is how badly I still want to be challenged despite having left my career behind. In fact, I want it so badly that I’m having to redefine what “challenge” even means to me. A real challenge involves some risk, even if that’s only emotional risk. Let’s talk about why it’s so important — and beneficial — to do the thing that scares you.

New Life Rhythms, A Delayed Reckoning and Being Okay with Blogging Less

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New Life Rhythms, A Delayed Reckoning and Being Okay with Blogging Less // Tanja Hester, Our Next Life, Work Optional: Retire Early the Non-Penny-Pinching Way // financial independence, adventure, happiness

I’m gradually moving toward a less frequent blogging schedule, driven largely by the evolving way I’m viewing and experiencing life in early retirement. This second year of early retirement has been a lot different from the first, and as I learn and evolve more, I’m discovering new ways of approaching life and purpose that sometimes come with uncomfortable realizations. In other words: I’m finally having that reckoning of sorts of “What am I doing with my life?” that so many retirees experience much sooner.

Decide For Yourself What Spending You Value, and Then Spend Without Guilt

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Decide For Yourself What Spending You Value, and Then Spend Without Guilt // OurNextLife.com, Tanja Hester, author of Work Optional: Retire Early the Non-Penny-Pinching Way

If you’re on the journey to a work optional life, or you’re already retired, you have probably spent some time pondering what you truly value most, and what doesn’t add value to your life. But do you spend accordingly, and — importantly — without guilt? If not, this post is for you, talking all about giving yourself permission to spend on what you value most, whatever it is, and regardless of whether others in the FIRE movement think it’s a worthy expense.

Don’t Let Life Pass You By While Saving for the Future

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Achieving a big financial goal like early retirement is made possible by committing to saving aggressively. But when I look back at our years when we were so focused on saving, the things I regret aren’t the times when we didn’t save enough, they’re times when we didn’t spend on once-in-a-lifetime experiences. Today I’m sharing one such instances, and the lesson I learned from it that it’s a mistake to let life pass you by just because you’re saving for a big goal.

Structure Your Life to Avoid Overspending

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Downtown Oakland, CA // Structure your life to avoid overspending money and boost your savings // by Tanja Hester at OurNextLife.com // early retirement, work optional, financial independence, saving, investing

I recently had an experience that offered a sharp reminder: despite years of saving (successfully!) and a year and a half of not blowing our early retirement budget, I’m still a spender at heart. But being a spender rather than naturally frugal doesn’t doom you to fail financially. You can still thrive and save at a high rate if you just structure your life in ways that set you up to succeed.

There Is No Financial “Truth” (But Why That’s a Good Thing)

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There Is No Financial Truth, But Why That's a Good Thing // Our Next Life // Early retirement, financial independence, FIRE, retire early, happiness, adventure, work optional

We’re supposed to save 2 times our salary by age 35, or is it 25 times our expenses to retire early? We’re supposed to ignore Social Security, but also claim it at 62 to hedge against market risk. We should try to get out of debt as quickly as possible, but also paying off a mortgage early is missing out on potential market gains. There is so much “truth” out there, so many “right” answers, and many of them conflict. How to make sense of them and decide which are actually true? Start by tossing out the whole notion that financial truth exists in the first place.

Building Climate Change Into Your Early Retirement Plans

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Building Climate Change Into Your Early Retirement Plans // Our Next Life // early retirement, financial independence, FIRE

You don’t have to agree on what’s causing climate change to agree that it’s happening, that it’s getting worse and that it will affect those of us who are retiring early (just like it will affect everyone on the planet). So how do you account for something as massive as climate change in your financial and life planning? What do you do with the doom and gloom news stories, besides throw your hands in the air and declare it hopeless? Let’s break it down into actionable steps.

Don’t Immediately Dismiss Early Retirement Naysayers

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Early Retirement Naysayers // OurNextLife.com -- financial independence, early retirement, FIRE

The FIRE movement has recently faced one of its biggest bits of criticism ever, from one of the country’s most famous financial experts (yes, that’d be Suze Orman), and the responses have been interesting. While plenty of folks have already responded to her critiques point by point, this is a good moment to remind ourselves why it’s so important not to write off any naysayers immediately, and instead to really listen to what they have to say.

Even in Early Retirement, You Have to Make Time // Q&A with John Zeratsky + Book Giveaway

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Even in Early Retirement, You Still Have to Make Time // Make Time: How to Focus on What Matters Every Day by Jake Knapp and John Zeratsky // Our Next Life // financial independence, FIRE, early retirement

Something that I think takes a lot of early retirees by surprise is that the things you always dreamed of doing when you were slogging through those saving years don’t automatically happen just because you subtract a job from your life. The minutes, hours and days still slip away mysteriously if we aren’t intentional about how we spend our time, and for those things that mean most to us, we truly have to make that time, which happens to be harder than ever in our distraction-filled world? This is one example of an area where we’ve made up our minds to make more time for something important, and an interview with John Zeratsky, co-author of the new book Make Time that’s all about this challenge. (Plus a book giveaway!)

The Most Important Early Retirement Indicator // Boredom in Early Retirement, Part 1

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The most important early retirement preparedness indicator // boredom in early retirement, part 1 // Our Next Life // financial independence, FIRE, FI

Like it or not, boredom in both early retirement and traditional retirement is a real thing. Between accounts I read online and notes I get from readers, it’s a phenomenon I see occurring pretty regularly. So I’m digging into boredom with a two-part series, first looking at how your answer to one question in particular tells you if you’re ready to pull the plug on work and retire early.

Science Confirms Why a Low-Information Diet Is Bad for You

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Science confirms why a low-information diet is bad for you // OurNextLife.com // early retirement, financial independence, productivity, lifestyle design, financial freedom, happiness, health, longevity

It makes total sense why the low-information diet is a frequent topic of discussion among current and would-be early retirees. There’s so much bad news these days that can feel overwhelming, and some well-known writers have argued in favor of tuning out. But is the low-information diet actually good for us? Let’s look at the science. (And then let’s look at how we can manage news and social media more healthily!)

Let the Feelings of Future You Be Your Guide

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Let the Feelings of Future You Be Your Guide // OurNextLife.com // early retirement, financial independence, adventure, happiness, spending decisions, needs vs. wants

Typical financial advice often focuses on learning to tell needs from wants. Which is great! But it only gets you so far. Most of the choices we make aren’t about needs vs. wants. They’re about wants vs. wants, or need-wants vs. want-needs. Rather than making your spending decisions based on this false binary, here’s why you should instead listen to the feelings of future you.

What Early Retirement Has and Hasn’t “Fixed”

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What Early Retirement Has and Hasn't Fixed -- OurNextLife.com // Financial independence, retire early, FIRE movement

For a long time, I let myself go down the magical thinking rabbit hole, convincing myself that early retirement would cure everything in my life that needed fixing. And even after I recognized that magical thinking for what it was, I still assumed that early retirement would fix a lot for us, especially things related to work stress and limited time. So how has that actually turned out so far? Let’s take a look.

Don’t Let the Impossibility of Achieving Perfection Hold You Back

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Don't let the impossibility of achieving perfection hold you back // Our Next Life // early retirement, financial independence, FIRE movement

If we know we can’t achieve something the way someone else did, or the way we might have originally have envisioned for ourselves, it’s easy to throw up our hands and decide that it’s not even worth trying. Here’s how I let go of the idea of perfection to get on a better financial path, and some tips for how you can stop letting notions of perfection and imperfection hold you back.

Getting Through the Middle Saving Years Slog

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Getting through the middle saving years slog en route to early retirement and financial independence // OurNextLife.com

Nearly everyone who achieves financial independence feels some level of impatience at some point, and that’s normal. But it’s especially easy these days to cross the line from normal impatience to borderline obsession, which only magnifies and worsens that impatience. Here’s some of what we did — and what we WISH we’d done — to get through the middle saving years slog.

Relearning How to Live Slowly

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Relearning how to live slowly in early retirement and financial independence // Our Next Life // ournextlife.com -- slow living, simple living, simplicity, lifestyle design

Building on the recent post on simple living, we’re working on going to the next level and living more slowly, which is as much a mindset as anything that anyone could see. The only problem? We don’t actually know how to live slowly, because we’ve never done it! But we’re not afraid to put in the effort to learn how. After all, we’ve never been retired before, so it’s bonkers to think we’d be great at every aspect of it right off the bat.

Retirement Needs a Rebrand

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My old career involved rebranding organizations, and that was one of my favorite parts of the job. Now, every time I hear someone debate what retirement is or isn’t, I think, “There is no one common understanding of retirement, so it’s definitely ripe for a rebrand.” Well, let’s do it. Let’s rebrand retirement. Come weigh in on what you want the new brand to reflect.

Don’t Get Discouraged by Slow Initial Progress // A Blast from My Financial Past

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Don't get discouraged by slow initial progress toward early retirement, financial independence or other large money goals! Your progress will speed up over time!

Some recent home organizing brought me to a bit of an archaeological find: a snapshot of my finances almost exactly 10 years ago, before Mark and I got married. I’ll bet they’re not what you expect, but what’s more, they show why it’s so important not to get discouraged if your financial progress feels slow in the beginning, or even for years!

Defining Simple Living for Yourself

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Defining simple living for yourself // OurNextLife.com // early retirement, financial independence, intentional lifestyle design

“Simple living” is a term that I resisted for a long time because it felt so prescriptive and unachievable. Maybe it’s all Instagram’s fault, but it felt like there was a way living simply was supposed to look, and that wasn’t for us. But I finally saw that it’s up to each of us to define what simple living feels like, and that there’s tremendous value in doing so. (Plus, enter to win Mrs. Frugalwoods’ new book!)

Aligning Your Spending with Your Values Vs. What You Value

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Aligning your spending with your values vs. what you value // Consider whether your spending supports only what adds value to your life vs. supporting your personal values, adding value to others' lives.

Aligning your spending with your values with one of the first bits of advice many of us here when we get on the path to financial independence. But that advice usually goes on to talk about value — specifically what you get most value from — and not really about values at all. This is my case for why it serves you better to think about both what you value and your personal values when it comes to your spending and economic power.

Who Left These Kids In Charge?! // Adapting to Life With No Structure

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Adapting to Life with No Structure // Our Next Life // early retirement, financial independence, lifestyle design, life planning, retirement

Our lives lately have looked slightly less than, er, adult. Some days we wonder why there are no grownups here to tell us what to do, instead just leaving us alone to do as we please with no structure whatsoever. It’s marvelous, of course, or at least marvelous for now, but we’re certainly wondering: At some point are we actually going to adapt to this new unstructured life?

Retiring Early in the Face of Fear

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Retiring Early in the Face of Fear // Our Next Life // The biggest non-financial question we've been getting lately, now that folks know we've retired, is "Aren't you scared?!" And you might assume that people who've made the big leap and given up the big paychecks would say, "Nope!" But that's not true. We are scared. Just as anyone doing something big and at least a little bit risky should be. But we didn't let that fear hold us back, and that's what actually matters.

The biggest non-financial question we’ve been getting lately, now that folks know we’ve retired, is “Aren’t you scared?!” And you might assume that people who’ve made the big leap and given up the big paychecks would say, “Nope!” But that’s not true. We are scared. Just as anyone doing something big and at least a little bit risky should be. But we didn’t let that fear hold us back, and that’s what actually matters.

Protect Your Early Retirement From Sequence of Returns Risk

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Protect your early retirement from sequence of returns risk // Our Next Life // early retirement, financial independence, investing, financial planning, retirement

Do the roller coastering markets have you concerned about the your early retirement plan? Sequence risk is by far the biggest risk early retirees face, and that risk can come from market crashes, long-term mediocre returns and even rising health care costs. Fortunately, though, we can all put ourselves in a good position to head off that risk, without lengthening the timeline to early retirement, by making some smart choices with asset allocation and behavior.

Signing Up for ACA/Obamacare Health Insurance for Early Retirement

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Signing up for Affordable Care Act / ACA / Obamacare health insurance for early retirement, as early retirees

We are officially covered by an Affordable Care Act (ACA) / Obamacare health insurance plan. Though getting covered was not as easy as we’d expected, and there were some big lessons we learned that all early retirees should know. Plus we talk about the challenge of projecting our income and revisit the benefits of keeping income low for health care purposes.

The Best Way to Begin Early Retirement? Super Frugal Vs. “Normal” Spending

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What's the best way to begin early retirement? By spending what you'd budgeted for, or by taking a super frugal approach to spending in the first year? We discuss pros and cons of each approach.

As total newbs to this whole early retirement thing, though admittedly newbs who’ve thought about this stuff a ton, we find ourselves now wrestling with a very practical question: Should we spend what we budgeted for this year, or aim to spend less, maybe a lot less? There are good reasons for either approach, so let’s talk about what those are.

The Thrill of the New and the Peril of Too Much Yes // Setting New Boundaries in Early Retirement

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The Thrill of the New and the Peril of Too Much Yes // Setting New Boundaries in Early Retirement

We’re 10 work days from early retirement, and are now starting to consider new opportunities that look to the untrained eye a whole lot like work. The whole point of our early retirement was to be able to say yes more, and some of the things we really want to be able to say yes to, money aside. But there’s peril in that — taking on too much, and making it not really early retirement after all. Here’s how we’re thinking about setting new boundaries.

What Do You Want to Be When You Grow Up? That’s What Financial Independence Is All About

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Our Next Life // What do you want to be when you grow up? That's what financial independence is all about. // Early retirement lets us answer that question, which is a way better question to focus on than "What do you do?"

The question, “What do you want to be when you grow up?” has never been far from my consciousness at any point in my life. I asked it of myself constantly as a kid, and I never really stopped even as an adult in a career. Which might partially explain how I got on an early retirement path. But answering that question — and separating “be” from “do” — is really what financial independence is all about.

Being This Close to Early Retirement Doesn’t Feel How I Thought It Would

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Being this close to early retirement doesn't feel how I thought it would // Our Next Life // on the emotional and physical feelings at this stage of the journey

We officially have so few work days left that we can count them on our fingers and toes. Which means we’re 100 percent fired up, right? Um, yeah, about that. Turns out even though I knew the feelings at this stage would be complicated, they’re even more conflicting that I expected. And that’s not to mention how I feel physically. How this point in time feels so different from what I expected.

What’s Your “Selectively Hardcore”? The Non-Financial Benefits of Strict, Strategic Frugality

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Being selectively hardcore -- keeping our house cold, and the lessons that has to teach us // Our Next Life

When we first moved to Tahoe, we ran the heat at what seemed like a reasonable cool temperature, 62 or 63 or so, but then got a three-digit natural gas bill that started with a 4. So began our quest to reduce our heating bill and to find how low we could go, but this isn’t about keeping your house cold. It’s about finding your version of “selectively harcore” and all the non-financial lessons that come from being strict with yourself in one way of your choice.

Allowance 2.0 in Early Retirement // Systems for Financial Success and Peace of Mind

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Bringing back the allowance in early retirement // Systems for financial success and peace of mind // using a personal allowance to take the pressure off our nest egg savings as well as our marriage and relationship!

We’re about to go through a life and financial transition as big as graduating from college or getting married — and that’s switching from earning plenty while working to earning very little in early retirement. Which means that we need a new set of systems to ensure our financial success, especially given our status as anti-budgeters. But it also means that we’re bringing back a tool we gave up years ago: the personal allowance.

Our Early Retirement Charitable Mission and Donor Advised Funds

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Just as we have a mission in early retirement to figure out what we want to do when we grow up, and to adventure more, we also have a mission to be more charitable, both by volunteering and by giving money directly to important causes. Which may seem harder when we have less cash flow coming in. But there are some good ways to build charitable giving into your retirement financial plan, including with a donor advised fund. What’s your charitable mission?

Don’t Write Off High-Cost States for Early Retirement // Why We’ll Never Leave California

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The most common question we got after revealing where we live was “But… California?! It’s such a high-tax state!” So let’s take a look at why we think California can be a great place to retire, as can many high tax states. Because there’s so much more to total cost and overall lifestyle than just income taxes, especially given that income taxes are far less relevant to early retirees.

A Reminder That What We’re All Doing Is Still Unfathomable to Most People

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So many of us, upon learning about early retirement, dive in headfirst, and discover this community full of people working toward the same goal. And along the way, we adjust our baseline based on the people we meet here, and we might even forget that we are the outliers, not the normal ones. Recently, we were reminded just how not normal this goal is, and that’s made us all the more grateful.

Why We Aren’t Banking on Social Security for Our Retirement — But Why You Might

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Today we’re continuing the mini-series on Social Security and Medicare by looking at whether or not you should build Social Security into your retirement plan. We’re not counting on it, in part because we don’t need to, but also for some big reasons that are worth considering for everyone who wants a secure financial future. Give it a read and then let us know what you think!

The Final Approach // 2017 Q3 Financial Update

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Holy moly — it’s our *very last* quarterly financial update before we retire early in a little over two months from now! (Can I just keep typing exclamation points and have that count as an intro?) !!!!!! The third quarter was a good one for us, and it’s looking like we have a good chance of hitting our stretch “magic number” goal. Come see where we are, and then share your Q3 progress with all of us!

The Income Streams Our Early Retirement Is (Now) Built On

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When we first formulated a real early retirement plan, it was based on the rigid belief that we’d never, ever work again. Or at least never *have* to work again. And while that’s still true — we haven’t expedited our plan by forcing ourselves to earn income in the future — we now expect to get a much more diversified set of income streams in early retirement. In part because life happens and we’ve made some different choices along the way. And in part because that recession hasn’t hit yet, health care is still up in the air, and it makes sense to keep hedging against sequence risk and health insurance uncertainty.

Embracing Both DIY and the Suboptimal // PLUS The Pre-Reveal Contest!

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It’s a two-for-one post today! First up, an examination of the joint urges among FIers to DIY our lives and finances, but also to optimize as much as we can. Let’s discuss how compatible those joint impulses really are, and the joy that comes from embracing the suboptimal. And then, it’s pre-reveal contest time! Check out the DIY swag I made just for the lucky winners, and enter your guesses for where we live, what we do for work, and any other fun facts you want to throw out there. Good luck!

Financial Independence, Fight Club and the Mindless Consumer Zombie Narrative

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I know you’ve heard this one before: the narrative of “working a job you hate to buy things you don’t need to impress people you don’t like.” It’s what I’ve come to call the Fight Club narrative, a distinct strand of the FI movement that posits consumerism as public enemy number 1. And while it’s a compelling narrative, here’s my case for why it’s harmful, and what we should be talking about instead.

Stepping Off the Map // There’s No Guidebook for the Emotions of Early Retirement

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The financial aspects of the early retirement journey are well trod at this point: reduce your expenses, save at a high rate, invest in assets that create passive income, blah blah blah. What’s less talked about is the emotional journey, which means that a lot of us are stepping off the map, and heading into uncharted territory. But it doesn’t have to be that way. Here’s our take on navigating those emotions, and why the unexpected ones are so valuable in guiding your financial plans.

What If Everyone Wanted to Retire Early? A Thought Exercise on Market Valuations

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Index investing, early retirement and financial independence in their most commonly discussed forms all rely on one simple principle: They only work if most people don’t do them. (Don’t believe me on indexing? Read on for plenty of evidence.) Let’s dig into this idea, specifically the thought exercise on what a universal aspiration for early retirement would mean for market valuations, and talk about what would make early retirement more accessible to more people.

$100 to Spend, or a Day of Retirement? Think in Days, Not Dollars, to Speed Your Progress

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Vicki Robin’s book Your Money or Your Life had a huge impact on how I view money, asking us to equate money we might spend with the life force it represents, in other words, the time it took to earn it. And while that’s a great starting point for shifting our thinking about money and spending, I have a different proposal for how we should think of that money to speed our progress toward financial independence, focusing not on how long the money took to earn, but on how much time it buys us back.

The Three-Part Formula to Achieve Any Huge Goal, Even When Advice Doesn’t Fit

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The Three-Part Formula for Success That Works for All Major Life Goals Including Early Retirement or Financial Independence!

There is plenty of financial advice out there, including some very prescriptive advice about how to achieve financial independence or virtually any big goal you can think of. The only problem is: that advice, while great for some, is guaranteed to be bad advice for others. Rather than trying to follow advice to the letter — or give it out in a prescriptive way — let’s focus on the formula instead, a formula with three key ingredients that can get anyone in nearly any life circumstances to achieve big goals.

How to Make Saving for Early Retirement Not Feel Like a Sacrifice

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How to make saving for early retirement not feel like a sacrifice // Saving, frugality, retirement savings

If you’d told me at the beginning of our early retirement journey that we’d be on the verge of retiring only six years later, and that we wouldn’t be miserable or feel like we’d lived a life of sacrifice to make it possible, I wouldn’t have believed you. But it’s true. And not because we haven’t dramatically cut our spending. We have. But because sacrifice is a perception, not an absolute, and we’ve managed to balance out cuts to our spending with additions to other parts of our lives. Here’s how.

How We Calculated Our “Enough” Number for Early Retirement

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Calculating Our "Enough" -- Determining the Numbers Behind Our Financial Independence and Early Retirement Plan

Today I’m (finally) sharing something that I’ve wanted to write about for a long time, but haven’t tackled because there is no easy formula: how to determine what is “enough” to save for early retirement. “Enough” is perhaps the centrally important concept to early retirement, but it can feel overwhelming to quantify your own. Here’s a breakdown on how we calculated ours, and how you can do the same for your own circumstances.

How to Use Your FI Freedom to Agitate for Others at Work

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How to Use Your FI Freedom to Agitate for Others at Work | financial independence, early retirement

Those of us on the FI path who are still working have an incredible freedom that most of the working world doesn’t enjoy: the freedom to push for the change in our companies or industries that others might get penalized for pushing for. Better pay, more empowering conditions, parity, diversity, you name it. If we get labeled difficult or squeaky wheels, it doesn’t matter, because we’re on our way out. Here’s how — and why! — to use that power, both for the greater good and for your own legacy.

Don’t Forget About Your Later Years // Planning for Early AND Traditional Retirement

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Don't Forget About Your Later Years // Planning for Early AND Traditional Retirement -- make sure your planning includes planning for early retirement, and all the considerations that go into traditional retirement planning

We know — the excitement of the *early* part of early retirement is powerful. So much so that it’s easy to focus our retirement planning mostly on those early years. The later years are also so much harder to predict — more variables, a longer time horizon, more unknown unknowns. But as we’ve seen in our own planning, it’s easy to have an inadvertent early phase bias built in — here’s how to suss that out and ensure that you’re planning for both your early retirement and traditional retirement.

Countering Magical Thinking About Early Retirement and Financial Independence

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Countering magical thinking about early retirement and financial independence, expectations and happiness, not setting yourself up for disappointment in retirement

Early retirement and financial independence are such huge goals that most of us can’t help but build them up in our minds, and that often leads to the totally normal tendency to get into magical thinking: believing early retirement will make us happier, or better people, or cure whatever else ails us. Today we get into why it’s worth countering that magical thinking, and how to do it.

The Dose Makes the Poison // Radical Moderation in Frugality, Saving and Spending

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The Dose Makes the Poison // Radical Moderation in Frugality, Saving and Spending -- not trying to save too fast or spend too perfectly en route to financial independence or early retirement

There’s a principle in medicine that the dose makes the poison. Which means, very few substances are good or bad for us no matter what. Instead, what matters is how much of them we take. And it’s exactly the same with money. It’s easy to make symbols of things like buying lattes or paying for cable, but those behaviors aren’t objectively a problem. What might be the problem, however, is the dose. Why we’re big believers in focusing on the dose, in context, and embracing a sense of radical moderation.

The Most Important Ingredient in the Pursuit of Financial Independence

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The Most Important Ingredient in the Pursuit of Financial Independence: Excitement!

Over the past two and half years of blogging about our early retirement journey, we’ve had the pleasure of meeting and hearing from several dozen of people who’ve achieved financial independence. All the while, we’ve been going along on our journey, and noticing what spurs us along more than anything. Turns out our journey and those of others’ have one key ingredient in common.

What We Know — and Still Don’t Know — About Early Retirement Health Care

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What We Know and Still Don't Know About Early Retirement Health Care // Affordable Care Act, Obamacare, Health Insurance, Health Care Coverage, Early Retirement, Financial Independence, Senate Health Care Bill, AHCA, Early Retirees

Things have been moving quickly in the health care debate, which many of us on the verge of early retirement have been eyeing closely. Just this week, the latest Senate proposals to reform the Affordable Care Act and the later proposal to repeal it altogether were withdrawn. So where does that leave us all? What do we know? And more importantly, what do we still not know about health care and costs for early retirement? Let’s take a close look.

Our Changing Definition of Early Retirement and the Power of the Freedom to Fail

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OurNextLife.com // Our changing definition of early retirement and the power of the freedom to fail

We’ve evolved a ton in our vision for early retirement, starting with only a vision of what we were retiring from, to now having a clear vision of what we’re retiring to, and making a big shift in the role we see work playing in our post-career lives. But even though we plan to work after this year, we see it as so different from “real work,” because unlike almost everyone else out there, we will be totally free to fail at whatever we do. A look at our new and revised definition of early retirement, and how the freedom to fail has helped us get here.

Magic Numbers, Padding and Panic // 2017 Q2 Financial Update

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Quarterly financial progress report toward early retirement and financial independence

It’s time for our second quarter early retirement progress report — our second to last! — complete with charts galore. This quarter we hit another milestone that’s both wonderful and a relief, and we’re setting our sights on building up a sizable cushion by year’s end for future health care unknowns. Plus: we’ve launched a reader survey and we’d LOVE your input.

Does Your Exit Plan Have an Exit Plan? // What If You Change Your Mind?

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Does your exit plan have an exit plan? Why you need to be able to change your mind in early retirement -- about where and how you live, about work, and about anything else. Make sure you build in the resources to keep your options open.

Today we’re talking options, and keeping them open. Early retirement isn’t an ending, after all — it’s a beginning. And if we go into that beginning with a limited set of options, and no ability to change our course, we could be setting ourselves up for a less-than-ideal future. Here’s why it’s so important to have an exit plan from your exit plan, which really just means you’re giving yourself the financial and logistical resources to change your mind.

The Paradox of Growing Up So We Can Avoid Growing Up

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The Paradox of Growing Up So We Can Avoid Growing Up // For those of us pursuing early retirement so we can be kids forever, there's an interesting paradox: we have to grow up to avoid growing up and early retire.

I spend a lot of time talking about the nobler aspects of early retirement like how it will give us time to do more volunteering. But can we all be honest? We can do noble things in retirement, but the reason doesn’t have to be noble at all. For us, it’s all about what is most fun, and the answer is: not working. We want to retire early so that we can go back to being kids, but the paradox is that we’ve had to grow up big time to avoid growing up.

The Before and After Early Retirement To Do Lists

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Pre-Early Retirement To Do List // What To Do Before and After You Retire Early

Our early retirement might be right around the corner, but we still have a lot to do before the year is up to make sure that we’re truly ready to make the big leap. Then after we pull the plug, we have a different set of things to do. Here are our big lists of things to do before we retire early, and right after, as well as things we’ve already checked off the list this year. Are we missing anything? Let us know!

Why “Saving Money” Usually Means Spending Money, and the Mindset We Foster Instead

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OurNextLife.com // Why “Saving Money” Usually Means Spending Money, and the Mindset We Foster Instead // avoiding the trap of chasing deals and seeing spending as "saving"

It is a natural thing to want to save money, and those of us pursuing huge financial goals innately find the idea of saving even more powerful. The problem comes when marketers deliberately blur the line between saving and spending, convincing us we’re doing one when really we’re doing the other. Today, recognizing when saving money is actually spending money, and how to keep the focus on the saving itself.

More Than a Prenup, You Need a Pre-FIRE Agreement

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Why married early retirees should have a pre-FIRE agreement, prenup for early retirement, prenup for financial independence

We love that more and more people are talking about prenups these days (more financial transparency between partners is great!), but for those of us considering early retirement, we think a pre-FIRE agreement is even more important. After all, early retirement comes with its own set of major risks, some of which we’re insulated from to some extent as a couple, but others which become bigger risks for those who are married. Here’s how we’re navigating this.

What Is “Work”? // Creating Our Own Definitions and More for the Retirement Police

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I just can’t help it. I feel compelled to keep poking the bear that is the retirement police, those folks who feel the need to tell us if we are or aren’t “retired,” according to whatever their definition happens to be. Today that means talking through the evolution of our personal definition of retirement, encouraging you to create your own, and taking a deeper look at what actually constitutes “work.” Come join the discussion!

What Has Surprised Us Most about Pursuing Financial Independence

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Maybe this is true for most of us, but we tend to focus on what’s right in front of our faces. On the journey to early retirement, that means thinking about how we treat our money now, and not always thinking back about how we used to relate to it. But today we’re taking a little look back to see what has surprised us most about pursuing financial independence, both financially, and in terms of our mindset.

Does Anyone Who Is Seriously Awesome at Their Job Retire Early?

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Imperial Palace, Tokyo Japan

A question we ask ourselves all the time is: Do we just want to retire early because deep down we feel bad at working? Even though we’re nothing close to bad at our jobs — we’ve very good at them — we’ve never quite been able to muster the right attitude to do them with total commitment. Which makes us wonder: for those special few who are seriously incredible at their jobs, would early retirement even enter their minds? Come share your theories!

Self Worth, Validation and Gold Stars in My Post-Career Life

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It’s nothing new to say that our collective digital life has made many of us focus too much on signs of external digital validation such as likes and comments. I’ve so far been okay at avoiding that trap, but after we leave our careers, the work I do will be more digital than ever. And given my gold star-seeking tendencies, how can I redefine my self worth post-career without falling into the digital stats trap?

Making Sure Our Retirement Is a Long and Healthy One // Planning for Longevity

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We’ve talked a lot about health care lately, given the political climate, but not health itself. And health is super important to us. Why bother planning for a long retirement if we aren’t going to stay healthy enough to enjoy it? Here’s everything we’re doing and thinking about to increase our chances of reaching a ripe old age in good health.

Don’t Listen to Us // Blogs Don’t Tell the Full FI Story

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An interesting thing happens with a lot of financial independence bloggers. As your audience grows, you suddenly have this incredibly opportunity not only to reach more readers, but to earn more from the blog. Which is wonderful! Except when it means you’re only telling part of the story. Here’s why this matters, and what we should all keep in mind as we read FI blogs.

To Travel Long or Travel Short? // The Start of Real Retirement Planning

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Something we’re starting to realize is: What we all call retirement planning isn’t really true retirement planning. Money is only a tiny piece of this, and not what most of us will be thinking about daily once we stop working. Real retirement planning is planning for all the rest of life that comes post-career, and for us, a big part of that is travel. So we’re shifting now into *real* retirement planning, and thinking through those big travel questions like how long to stay out, and where to go first.

Our Next Life Turns 2! // A Look Back, A Look Forward, and So Many Questions

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Today is our second blogiversary! In some ways, nothing has changed — we’re still slogging toward that big goal. But in other, more important ways, SO MUCH has changed in our lives, driven in large part by this blog and the awesome people who read it. Today we take a look at where we’ve been, a look at where ONL is headed, and we answer your questions.

When Loyalists Contemplate Quitting

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Thanks to some recurring power outages, we’ve had a lot of time lately to talk about what’s on our minds. And something that keeps coming up a lot is anxiety about what it will be like when we quit — not our post-work life, but the actual act of quitting itself. We know this feels tougher to us because we’ve been in our jobs a long time and are invested in them. Today: When loyalists contemplate quitting.

Want Adventure AND Security? Just Change Your Timeline

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I never took a break between high school and college, or between college and starting my career. And so for years, I thought I’d missed my chance to do something awesome, as though that’s something only young 20-somethings can do. But seeing people in our mountain town piecing together lives of adventure in all different ways made us realize: we haven’t missed out on anything. In fact, we’re probably doing this the better way, because our life of adventure will be built on solid financial footing.

Debt’s a Funny Thing // Plus: Why We’re Not Prepaying Our Rental Mortgage

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Paying off our mortgage last week has gotten us thinking a lot about debt, and how differently we all think about it — but also how we *feel* about it. Today we’re diving into those thoughts and feelings, and — because we got so many questions about it — diving into why we did pay off the mortgage on our house but why we’re not paying off the mortgage on our rental anytime soon.

Recognizing the Difference Between Burnout and a Dead End

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Anyone aspiring to retire early can list off a million reasons why we want to quit working, but what’s interesting is that most of those reasons have to do with work culture, not with work itself. On some level, we all crave the meaning and satisfaction that come with work, but the realities of modern work are very different from that work ideal. Learning to recognize the difference between work itself and work culture — and likewise the difference between job burnout and a true dead end career — can help us zero in on why we want to retire early to begin with.

Asking for More and Getting It // 2016 Goals Review + 2017 Goal Setting

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We’re thinking a lot lately about asking for more — asking for the compensation we deserve at work, and asking more of ourselves. And now, it’s official: in 2016, we successfully did both. Today, the story of how I negotiated for more money at work, and how we rose to the higher challenges we’d set for ourselves this year. Do we consider 2016 an unqualified success? Read on!

The Great Flip-Flop // How We’ve Reversed Roles on Our Retirement Timing

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Lately I’ve been making it sound like we both want to retire as soon as humanly possible, but that’s not true. I’m the one who wants out ASAP, while Mr. ONL is playing the role of the financially prudent one and trying to keep us working for one more year, as we’d always planned. But that’s not where we started — he used to be the one who wanted to quit ASAP, while I wanted to be sure we were prepared times ten. Today: the story of our retirement timing role reversal.

Don’t Check Out Early // Staying Engaged in the Home Stretch to Early Retirement

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Don't Check Out Early // Weathering the Home Stretch to Early Retirement -- Set goals, shape your legacy, give yourself something to strive for before you quit your career

We get the question a lot: “How do you stay patient en route to early retirement?” But we’ve realized that’s the wrong question we should all be asking. The biggest predictor of happiness in the journey to early retirement isn’t how patient or impatient we are, it’s whether we stay engaged or let ourselves disengage at work. That’s why we now say: Don’t check out early.

How Combined Finances Helped Us Get to FIRE Faster

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OurNextLife.com // How Combined Finances Helped Us Get to FIRE Faster // We're big believers in combined finances *for us* (though maybe not for everyone!) // Married finances, money management for couples, couples' finances

We don’t pretend to know whether what we do with our money will work just as well for other couples, but today we’re talking about something we do know for sure: We are going to be able to retire earlier because we have fully combined finances. We’ll also trace our history of money management as a couple, and look at the money-related feelings that give us extra momentum toward FIRE.

To Care or Not To Care // The Work Mindset As Retirement Nears

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OurNextLife.com // To Care or Not to Care // Work As Retirement Nears -- Care less at work, work less hard near retirement, Zero chill at work, DGAF at work

One of my favorite parts of FinCon was getting the chance to talk to bloggers who are ahead of us on their FIRE journeys, including several who are already retired. I asked them all if their last year of work was harder, and answers were mixed. It all seemed to come down to how much they cared about work in the home stretch, and it has gotten us wondering whether we can care less to make our last year less stressful.

Creating Your Community // #FinCon16 Recap

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OurNextLife.com // Creating Your Community // #FinCon16 Recap -- blogger community, personal finance bloggers, women bloggers, women who write

I’ve just returned from FinCon16, my first time at the financial bloggers conference, and I’m completely brimming with excitement about it all. My vision for this blog is a lot more clear, but most of all, I was continually floored by the warmth, openness and generosity of the entire community there. It all got me thinking about communities we create, and how we can all connect — and I don’t just mean bloggers!

Create a Flexible Vision for Your Next Life // Presence Over Absence

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OurNextLife.com // Creating a Flexible Vision for Your Next Life / Life Vision in Early Retirement / Post-Retirement Life Planning

Creating a vision for early retirement isn’t just important so you have cool stories to share — it’s crucially important to make sure you have a smooth transition into retirement, avoiding the declines in physical and mental health that many people experience, even in early retirement! Bonus: An update on our progress, and lots of graphics on creating a next life vision based on presence of awesomeness, not absence of work.

Rethinking Work in Early Retirement // Contingencies, Sequence Risk and Fail Safes

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OurNextLife.com // Early Retirement and Financial Independence Blog | Working in Early Retirement | Portfolio Preservation | Increasing the Odds of Early Retirement Success

We have said from our second post ever that our vision for early retirement has never included mandatory work. And we’ve been more vigilant about this fact than probably any other in our early retirement plan. We’ve shifted our investments, we’ve changed our timelines, we’ve debated when to give notice, but we’ve never wavered on the no mandatory work idea. But… that might be changing.

The Theory of Relativity and the Perception of Rich and Poor

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OurNextLife.com // Early Retirement, Financial Independence, Mountain Living, Simplicity

Before we left the big city we used to call home, we felt like we’d never be able to afford an actual house, which made us feel “poor” even though we had money saved and earned a good living. And now, we feel comparatively “rich” despite earning about the same. Today we discuss the impact of where we live *and* its culture on how relatively wealthy we feel.

All the Secrets of Our Success // A Compendium

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Today is a “clip show” post of sorts, putting together for the first time all of our money beliefs and actions that have gotten us where we are today. We spend a lot of time looking forward, and projecting future health care needs, where our income could come from and of course all the feelings. Today we’re sharing the master list, the grand compendium of everything that’s helped us get this far in our journey to early retirement.

How Will It Feel to Actually Spend Our Investments?

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OurNextLife.com // early retirement, financial independence, adventure, mountain living, world travel

We’ve spent more than a decade building up our savings and investments, all the while granting them a special status by not touching them. Even shelling out $8,000 for our tax bill this year felt painful. The pain of paying that bill made me wonder if I have “special occasion thinking” around our investments. And if, when it comes time for it next year, we’ll actually be able to spend our investments. Let’s explore…

Optimizing Our Retirement Income // ACA and Taxes Vs Actual Cashflow

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OurNextLife.com // Optimizing Our Early Retirement Income // Taxes and ACA vs Actual Cashflow

There’s an issue that we’ve struggled to get our heads around, which we’ll call our optimal retirement income: a level at which we get a big Obamacare/ACA subsidy on our health insurance, we pay low taxes and we enjoy a comfortable standard of living. But calculating that number is not as straightforward as it seems. Enter the income vs. cashflow discrepancy!

“Won’t You Be Bored?” and Other Questions You Hear on the Road to Early Retirement

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One of the funny things that happens when you’re open about FIRE plans is you get some questions that might seem ridiculous on their face, especially from people who haven’t yet had their minds blown by how achievable some form of early retirement is for plenty of folks, or who have never allowed themselves to dream about a life without the necessity of work. Rather than dismiss those questions out of hand, let’s actually dig into them.

Crafting a Life That Keeps the Stoke High

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OurNextLife.com // early retirement, adventure, mountain living, financial independence

It’s easy to think of early retirement as all about the escape. But then what? We don’t want any part of our life to be defined solely by absence, by its lack of something, in our case the lack of work. We want our lives to be defined by presence, to be lived in the affirmative, the ultimate opt-in to what fires us up and makes us launch out of bed in the morning. That’s why we’re busy crafting a life that keeps the stoke high.

Make Sure Your Vision Includes Joyful Generosity

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Thinking about how we want to be remembered, we always come back to this idea of leaving the world in better shape than we found it, even if it’s only in little ways. And as early retirees, we’ll be in a unique position to do that, because we’ll be able to spend most of our time on projects that are important to us, that help our community, instead of focusing solely on earning a living. Here’s why we think everyone should build some joyful generosity into their life plan.

The Frugal Habits We Don’t Miss for One Second

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We constantly come across new tips on how to get to “optimal frugality,” and while we think it’s great to continually try to optimize your spending, something that we now know to be true is that there’s never a point of ultimate optimization, a point when we have everything figured out perfectly. Rather, it’s an ongoing process of dropping habits and adding new ones. Here are some we’re happy we’ve dropped.

Rethinking the Emergency Fund

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A lot of what we talk about here is specific to people on the early retirement path, but today’s topic is something every single one of us should have as an important part of our financial plan: an emergency fund. We think of our emergency fund not as a one-and-done kinda thing, but as something that has evolved upward and downward over time. And now, as we’re approaching early retirement, we’re once again rethinking how much we need to have saved in our e-fund when we hit our magical date.

Invest More or Pay Down the Mortgage? // What To Do With Extra Funds

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A tension we notice a lot in PF blogland is the question of whether to prepay the mortgage, or sink as much money as possible into market funds, and it’s a question we struggle with, too. In some imaginary world in which we could see into the future and see how the markets will perform, it would be an easy decision to make. Let’s dig into how we answer this question in reality.

Mapping Out Our First Year of Early Retirement

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we’ve had that mythical first year of freedom on our minds in a big way lately. like any aspiring early retirees worth our salt, we spend lots of time thinking about everything we want to do when we have more time on our hands, but we’ve been getting more specific, and thinking about the things we’ll do as we adjust to our post-work era, and some of the big life goals that we want to tackle right away.

Why We Take Willpower Out of the Equation

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we think it’s easy to feel a bit hopeless in the face of financial hurdles if you’re not a person for whom financial virtues comes easily. if you’re not a natural saver, you’re not doomed to a life of financial misery. but, you have to know what your weaknesses are, and develop a system to work around them. here’s how we’ve built a system that doesn’t rely on willpower at all.

A Butterfly Flaps Its Wings // The Story of Our Worst and Best Investment

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today we’re telling the story of the city condo we once owned, and which we’ve struggled to define as a “good” investment or a “bad” one. it’s a reminder that it’s not always easy to tell good decisions from bad decisions — or good investments from bad investments — but rather it’s about what those decisions do to your trajectory, and what other decisions they influence.

Our Golden Handcuffs // Sticking It Out in Stressful Jobs Until We Retire

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we feel the sunday blues in a big way. and we know why: not only do we just not love having to work every day, we know that we’re in especially high pressure, stressful, occasionally soul-sucking jobs. but we didn’t just default into these golden handcuffs of ours, and we don’t stay in our jobs because we lack imagination. our choice to stay put in unsustainable jobs is a clear-eyed decision we’ve made, based on considering all of our options and deciding what’s most important to us. the most important thing? getting to our exit date as soon as we possibly can.

The Ten Questions to Answer Before You Retire Early

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early retirement is a bfd. and it’s not for everyone. it’s a very different path from the one most people follow for a reason, and it’s not one we should go down without having our eyes wide open. early retirement won’t magically fix everything we wish was different about us or our lives, and it comes with its own set of pitfalls and stresses. to help sort this out, we’ve put together a list: the ten questions you should be able to answer before you retire early.

Finding Your Kindling // Lighting Your FIRE with Contagious Flames

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you know we love a good object lesson. recently we had one inexplicable morning when the fire just would. not. light. those days are a reminder that the definition of insanity is doing the same thing over and over but expecting different results. the answer: add kindling. the point of the kindling is not only to get us past those obstacles, and to get the fire going a little, but to get those flames to start spreading — and spreading fast.

The Anti-Greed Manifesto // Early Retirement Is About “Enough”

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we’ve both come across a seemingly frequent but also puzzling (to us) phenomenon while perusing new blogs. when aspiring early retirees are telling people in their lives about their plans to retire early, they’re getting negative responses. one of which has us utterly befuddled: the assertion that the accumulation of assets required to retire early constitutes pretty much the worst quality we can imagine: greed. here’s our response, in manifesto form.

All the Charts // Our Progress Toward Early Retirement

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today we’re sharing the clearest glimpse yet into where we are on our journey toward early retirement in money terms, along with a detailed breakdown of how we plan to fund both our early retirement and our full retirement. we’re talking percentages instead of absolute numbers, but are going into a lot more detail than we ever have before. that’s right: it’s all the charts.

This Is Not My Beautiful House // This Is Not My Beautiful Wife

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last week on an early morning flight, i flew over a line of cars on a major commuting artery, already in bumper-to-bumper traffic before the sun was up. and i wondered: how many of those people, as kids, dreamed that, one day, after slaving away at school for more than a decade, going to college and doing all the right internships, their reward would be this: soul-crushing traffic? that they’d rise before the sun for the privilege? that this would be their destiny?

Adjusting Our Goals // Rolling With the Market Punches

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we’ve been tracking our numbers for years now, and have always set annual goals for ourselves in terms of savings and mortgage paydown. but crazy as it may sound for us to say this, we’ve never defined those goals in terms of strictly what we would contribute. we’ve only defined our goals in terms of total balance. but with only goals about total balances, we now feel like we’re failing in the current market landscape, when the truth is that we’re saving more than ever. here’s how we’re adjusting our goals.

On Still Not Sharing (Most of) Our Numbers // Talking Finance With No Finances

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one of our earliest posts on this blog was about how we don’t share our numbers. it’s mostly because, one day not too far off in the distance, we will drop this whole anonymous charade, and we don’t want all the details of our finances attached to our names and faces. in our culture, money comes with meaning and prejudgments. having x amount means you’re supposed to behave a certain way, dress a certain way, spend a certain way. we don’t want those expectations to precede us.

Progress and Uncertainty on the Road to Early Retirement // Mid-Year Check-In

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looking at things big picture, we’re astonished at how far we’ve come in a short time, aided in large part by jobs that overpay us. since we bought the house four years ago, our net worth has tripled, and the year-over-year gains are pretty big, owing to us getting serious about saving and about paying off the house quickly, as well as growth in the markets since 2009.

Our DIY Life // How We Save (and Sometimes Splurge) By Doing It Ourselves

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we have always loved doing things ourselves. what’s funny in retrospect is how little the money piece has mattered to us in questions of diy, at least with the small stuff. but of course that was then. and this is our running-like-hell-toward-early-retirement now. money matters. especially the saving of it. so now when we diy things, it’s just as much about saving money as it is about the joy of making something.

How We’ll Learn to Stop Worrying and Love The Budget // Managing Our Finances in Retirement

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we never hide that we are not frugal by nature, we’re not budgeters, and we’ve really only succeeded at retirement saving by employing a pay ourselves first approach that is essentially tricking ourselves into thinking we have far less to spend than we actually do. that is all well and good for now, but things will definitely have to change once we quit our jobs at the end of 2017.